What does term life insurance cover?
Term life is temporary life insurance that pays out a death benefit upon the death of the insured person during the policy term.
The types of death covered by a term life policy include natural causes, illness, and accidental death.
In addition, suicide is covered if it occurs two years after the start of the policy (one year in some states).
Learn more about What term life insurance covers?
Yes, a term life insurance policy covers accidents.
Term life insurance pays out a death benefit if the insured person dies as a result of natural causes, medical illness, or accidental death.
However, some insurance policies may have exclusions for high risk activities; such as, sky diving or auto racing.
So, although term life plans cover accidental death, your coverage is subject to the terms, conditions, and exclusions stated in the insurance contract.
Learn more about Does term life insurance cover accidental death?
The age that a term life insurance policy covers you to depends on your age at the time you buy your policy, and the duration or term of coverage.
For example, if you are 25 when you buy a 20-year term life policy, your coverage will remain "In Force" until you are 45 years old. But the policy expires at the 20-year anniversary of your coverage.
However, a term to age 70 policy provides life insurance protection until you reach 70 years old.
Learn more about Term life insurance covers to what age?
Yes, term life insurance policies cover cancer.
If you are insured by a term life policy, and you die as a result of cancer, the death benefit would be paid out to your beneficiary.
Payment of any death benefit is subject to all terms, conditions and exclusions stated in the insurance contract.
However, unless you lied on the application for life insurance, your policy would likely pay out on death resulting from cancer.
Learn more about Does term life insurance cover cancer?
A standard term life insurance policy does not build up any cash value inside the policy. it provides Pure Protection - a death benefit but no cash value.
However, Return of Premium term life insurance policies do return your paid premiums if you outlive the duration of your policy term.
That means, if you are alive when your term life insurance expires, you get the premiums back.
Learn about about Does term life insurance have cash value?
Guaranteed annual premium term life insurance means that the premium you pay on an annual basis for your insurance policy is guaranteed not to change from what was promised in the contract when you purchase the policy.
What is a free look period for term life insurance?
It's the period of time you have to return your life insurance policy (after receiving it) and get a full refund of all premiums paid, should you decide you no longer want to keep your life insurance.
Usually, insurers offer a free look period of between 10 to 30 days, but the state department of insurance sets regulations for the specific minimum free look period required for your state of residence.
Learn more about the term life insurance free look period.
What are the limitations to term life insurance policies?
There are a few important limitations to term life, including:
Learn more about term life insurance limitations of coverage.
